Car Insurance Explained

By Author: Danny Aaron
Total Articles: 67
Comment this article

There are assorted ways that a car insurance company will try and attain you as a customer. The most logical way to ensure you are going with the best auto insurance company possible is to shop around and compile as many quotes as possible, so that you are making an informed and wise decision. With the current size of most cities in the world, and even the far distances between areas in rural dwellings, a car is an imperative mode of transport. The loss of a motor vehicle can have devastating affects on one's career and quality of life. The best thing you can do for this valuable asset is to ensure that you have protected it in the event of anything going wrong. This is where car insurance comes in.

There are a few different angles to a vehicle insurance policy. To simplify them, they can be broken down into property, liability and medical coverage.

Firstly, property coverage is the payout to any damages to your vehicle in an accident. Property cover will also pay for the replacement of your vehicle. If you still owe the bank for your old written off vehicle, and have the right kind of cover, they will pay off ...
... what you owe and pay you the value of your vehicle that was written off. This way you can repair your vehicle or you can buy a new one. If you have extensive cover, you may even have the use of a hired motor vehicle until you have either repaired your old one or purchased a new one.

Liability coverage is that crucial cover that pays for the repairs to damages to other people's vehicles involved in the accident if the accident was deemed to have been caused by you. This can come in very handy if you have crashed into a luxury vehicle!

Medical auto insurance cover pays for the medical costs for any injuries sustained in an accident, any rehabilitation costs and also any funeral or wage lost costs. This all depends on the extent of your cover. The extent of your cover will also determine whether your insurance payout will cover medical liabilities to other parties involved if the accident was your fault.

There are lots of different extras you can add onto your coverage. These can be things like theft cover, fire and hail (or natural disaster cover) and windscreen repairs. Some car insurance companies will offer lock replacement if someone tries to break into your car, and will even cover for stolen or damaged tires. As previously mentioned, this is all dependant on the type of cover you have. Naturally, the further your cover reaches, the more expensive your premium will be. This is why it is important that you shop around and personally liaise with the insurance company so you know exactly the kind of deal you can get before you take out a new policy.
For more information on the best pay per kilometre car insurance in South Africa visit http://www.payasyoudrive.co.za.